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Insider Weekends – December 18, 2015

  • December 20, 2015

Welcome to edition 287 of Insider Weekends. Insider buying decreased last week with insiders buying $308.73 million of stock compared to $596.73 million in the week prior. Selling on the other hand increased with insiders selling $871.89 million of stock last week compared to $767.16 million in the week prior. Despite the decline in insider buying, insider buying remains elevated as insider buying tracks below $200 million most weeks.

Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week went up to 2.82. In other words, insiders sold almost 3 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 1.29. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.

Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

Notable Insider Buys:

1. Restaurant Brands International Inc. (QSR): $36.7

Shares of this operator of Burger King and Tim Hortons were acquired by 3 insiders:

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